The Bed Company continues trading during Year 4. The statement of financial position (balance sheet) at the end of Year 4, in its first draft, showed receivables (debtors) as £4,850 and the provision for doubtful debts unchanged from Year 3 at £450. Enquiry showed that during Year 4 some of the receivables (debtors) at the end of Year 3 had been confirmed as bad. They amounted to £250 but nothing had yet been recorded. The management wish to make the provision

£550 at the end of Year 4. Other assets amount to £12,000, ownership interest at the start of Year 4 is £10,550 and the profit is £5,750.

Required Prepare an accounting equation spreadsheet to show the effect of the bad debt being recognised and of the decision to make a provision at the end of Year 4. (See Table 9.4 for an illustration.)

AppendixLO1